Aetna 2003 Annual Report Download

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Leading
theWay
AETNA ANNUAL REPORT 2003

Table of contents

  • Page 1
    Leading theWay AETNA ANNUAL REPORT 2003

  • Page 2
    ... AND HIGH-QUALITY HEALTH CARE SYSTEM 27 Harvey V. Fineberg M.D., Ph.D. President Institute of Medicine CONSUMER-DIRECTED HEALTH CARE FROM AN EMPLOYER PERSPECTIVE Charles O. Holliday, Jr. Chairman and Chief Executive Officer, DuPont FINANCIAL AND CORPORATE INFORMATION 17 ENSURING THE HEALTH OF...

  • Page 3
    ... anniversary. It was a great achievement. Not only did we mark a milestone few companies ever reach, we celebrated what we've been able to accomplish in restoring Aetna's pride and position in the marketplace. We honored the past, yet embraced the future, knowing that we built a strong foundation...

  • Page 4
    JOHN W. ROWE, M.D. Chairman and Chief Executive Officer

  • Page 5
    ... our new strategic plan. At the same time, we committed to enhancing our health care quality initiatives and strengthening our working relationships with doctors and hospitals. It was a lot of ground to cover, but over the course of 12 months, we produced outstanding results. Aetna employees proved...

  • Page 6
    ... Health and Disability, we can consider member needs from both a health- and work-related perspective. This holistic approach can lead to more coordinated care and reduced absenteeism. In 2003, we also enhanced our online plan sponsor administration tools and employee self-service Web sites...

  • Page 7
    ... care for members was also foremost in our minds. In 2003, we began piloting an innovative network of specialist physicians, called Aexcel SM, based on evidence of quality health care outcomes and cost-effectiveness of care delivery in general surgery, obstetrics-gynecology, orthopedics, cardiology...

  • Page 8
    We Want You To Know SM Our new advertising and tagline signals that a new leader is emerging in the industry. One example of Aetna's 2004 print advertising.

  • Page 9
    ... portfolio, including benefits such as dental, pharmacy, behavioral health, long-term care, disability and life insurance. In 2004, Aetna also is building on existing relationships with doctors and hospitals to launch a workers' compensation network access product. In addition to growth in...

  • Page 10
    ...health plan choices to seniors, a new prescription drug discount program and new tax-deductible health savings accounts (HSAs). We will take this opportunity to provide Medicare beneficiaries expanded products and services, and in 2004 we will offer HSAs as part of our portfolio of consumer-directed...

  • Page 11
    ... These important initiatives in our business are complemented by strong efforts in this area by the Aetna Foundation. In 2003, the Aetna Foundation provided approximately $3 million in funding to programs focused primarily on addressing disparities in health and disease prevention. In the future, we...

  • Page 12
    ... 2003, while they decreased pretax operating margin in 2002 by 1.4 percentage points on a GAAP basis. 2 For 3 Pretax The foregoing financial information should be read in conjunction with the financial statements and related notes as presented in Aetna Inc.'s 2003 Annual Report, Financial Report...

  • Page 13
    Leading Change In The System Aetna remains committed to playing a leading role in helping to improve access to quality health care in America, as are the individuals who penned the essays in this year's annual report. We thank them for their contributions and encourage you to read about their ...

  • Page 14
    DAVID SATCHER M.D., PH.D. Director National Center for Primary Care Morehouse Medical School

  • Page 15
    ... five settings as outlined in detail in the Call to Action. These include schools, home/community, work sites, health care and media. Health care providers must identify overweight and obesity in children as not only concerns but problems, and prescriptions for changed behavior must be written. 13

  • Page 16
    HARVEY V. FINEBERG M.D., PH.D. President Institute of Medicine

  • Page 17
    ... Eng J Med 2003:348:2635-45). Two reports from the Institute of Medicine, To Err is Human (2000) and Crossing the Quality Chasm (2001), outline the scope of the problems of medical errors and deficiencies in the quality of care, and point the way to solutions. Individual negligence accounts for only...

  • Page 18
    MARIAN WRIGHT EDELMAN President and Founder Children's Defense Fund

  • Page 19
    ... and immunization programs, we have fallen far short of providing every child insurance coverage and access to quality health care. Moreover, access to quality care is necessary, but not sufficient to eliminate children's health disparities. We cannot narrow the gap in health without addressing...

  • Page 20
    TROYEN A. BRENNAN M.D. Professor of Medicine Harvard Medical School Professor of Law and Public Health Harvard School of Public Health

  • Page 21
    ... leading to problems with access as physicians retire early, move to less litigious states or limit care in a variety of ways. The tragedy about the malpractice crisis is that tort litigation based on medical injuries has failed to fulfill its two critical societal functions: compensation for those...

  • Page 22
    JEFFREY S. LEHMAN President Cornell University

  • Page 23
    ... and complements university-subsidized services designed to meet the needs of students living at Cornell, on leave or traveling abroad. We provide this coverage as a benefit for graduate students and urge undergraduates to purchase it. Cornell recognizes its investment in students' health to be...

  • Page 24
    TOMMY G. THOMPSON Secretary of Health and Human Services

  • Page 25
    ... businesses. With the Medicare Modernization Act, we are saving seniors money on prescription drugs, improving preventive benefits, and increasing access to doctors and medical care. And as part of it, we created Health Savings Accounts that will make it easier for all Americans - not just Medicare...

  • Page 26
    KAREN DAVIS President The Commonwealth Fund

  • Page 27
    ... our nation's health insurance safety net, providing health and long-term care coverage for low-income populations. It is a workhorse - covering people with HIV/AIDS, the homeless, those with serious mental illnesses and children with developmental disabilities. The program covers 50 million people...

  • Page 28
    CHARLES O. HOLLIDAY, JR. Chairman and Chief Executive Officer DuPont

  • Page 29
    ... care programs offered by large companies in the U.S. looked similar across all employers. Cost was not much of an issue, accounting requirements for retiree benefits were still a gleam in the regulators' eyes and the concept of "first-dollar coverage" had not yet become embedded in health care plan...

  • Page 30
    29 FINANCIAL AND CORPORATE INFORMATION 30 31 CONSOLIDATED STATEMENTS OF INCOME CONSOLIDATED BALANCE SHEETS CONSOLIDATED STATEMENTS OF CASH FLOWS 32 33 34 36 BOARD OF DIRECTORS MANAGEMENT SHAREHOLDER INFORMATION INFORMATION ABOUT THE ESSAYISTS 28

  • Page 31
    ...per common share data) Revenue: Health care premiums Other premiums Administrative services contract fees Net investment income Other income Net realized capital gains Total revenue Benefits and expenses: Health care costs Current and future benefits Operating expenses: Salaries and related benefits...

  • Page 32
    ... policy benefits Unpaid claims Policyholders' funds Long-term debt Other long-term liabilities Separate Accounts liabilities Total liabilities Shareholders' equity: Common stock and additional paid-in capital ($.01 par value, 748,624,161 shares authorized, 152,523,670 issued and outstanding in 2003...

  • Page 33
    ...for) provided by investing activities Cash flows from financing activities: Deposits and interest credited for investment contracts Withdrawals of investment contracts Issuance of long-term debt Repayment of short-term debt Common shares issued under benefit plans Common shares repurchased Dividends...

  • Page 34
    ...Professor of Health Policy and Management Harvard University Judith Rodin President University of Pennsylvania John W. Rowe, M.D. Chairman and Chief Executive Officer Aetna Inc. Ronald A. Williams President Aetna Inc. R. David Yost Chief Executive Officer AmerisourceBergen Corporation COMMITTEES OF...

  • Page 35
    ... Accounts and Health Care Delivery William J. Casazza Vice President, Deputy General Counsel and Corporate Secretary Wei-Tih Cheng Senior Vice President and Chief Information Officer Eric S. Elliott Vice President Pharmacy Management David W. Entrekin Vice President Investor Relations Patricia...

  • Page 36
    ... holders of Aetna's common shares. Web Site Access to Aetna's Periodic and Current Reports and Corporate Governance Materials SHAREHOLDER INFORMATION CORPORATE HEADQUARTERS 151 Farmington Avenue Hartford, CT 06156 860-273-0123 Annual Meeting The annual meeting of shareholders of Aetna Inc. will...

  • Page 37
    ... replacement dividend checks, address changes, stock transfers and other account matters. EquiServe Trust Company, N.A. P.O. Box 43069 Providence, RI 02940-3069 1-800-446-2617 DirectSERVICE Investment Program Current shareholders and new investors can purchase common shares of Aetna and reinvest...

  • Page 38
    ... Care, Morehouse Medical School, Atlanta, Georgia, and former U.S. Surgeon General and Assistant Secretary for Health. HARVEY V. FINEBERG M.D., PH.D. Contributor of the essay Student Health and Health Insurance, is President of Cornell University, Ithaca, New York. TOMMY G. THOMPSON Contributor...

  • Page 39
    Innovation. Integration. Information.

  • Page 40
    www.aetna.com 31.05.900.1-03